[PPT] - 2 nd Quarter 2014 Investors Briefing Financial and Operating Results PowerPoint Presentation

SLIDE 1

2nd Quarter 2014 Investor’s Briefing Financial and Operating Results August 13, 2014

ABS-CBN Investor Presentation 1

SLIDE 2

2nd Quarter 2014 Highlights

ABS-CBN Investor Presentation 2

Recognitions and Awards

Mr. Eugenio Lopez III,

KBP Lifetime award

Mrs. Charo Santos-Concio,

Woman of the Year Asia Pacific Stevie Award

Launched ABS-CBN Digital Storefront ABS-CBN Events

Service Company of the Year, Asia Pacific Stevie Awards;
Best TV Station, 22nd Golden Dove Awards of the KBP
Gold Award – Advocacy , Tulong Na, Tabang Na, Tayo Na,

Asia-Pacific Tambuli Awards

Silver Award – Innovative and Integrated Media( Tulong

Na, Tabang Na, Tayo Na), Asia-Pacific Tambuli Awards

International Gold Quill 2014 – Film Restoration
ABS-CBNNews.com & iWantTV – Best in category Digital

Filipino Awards

SLIDE 3

ABS-CBN Investor Presentation 3

Excluding election-related advertisements, revenues increased by 3.0%

1st Half 2014 Revenues

6,965 7,559 10,213 8,819

2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 1H'13 1H'14 Consumer Sales Ad Revenues

59% 41% 46% 54%

17,178 16,378 4.7%

In PHP Millions

13.6% 8.5%

Election-related revenues

SLIDE 4

Costs and Expenses

ABS-CBN Investor Presentation 4

For the 6 months ended June 30, 2014

4,922 4,794 4,397 4,698 5,826 5,600

2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 1H'13 1H'14

15,145 15,092

3.9% 6.8% 2.6%

0.3%

In PHP Millions

Production Costs Cost of Sales & Services GAEX

SLIDE 5

4,549 4,794 4,397 4,698 5,770 5,600

2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 1H'13 1H'14

Costs and Expenses - Recurring

ABS-CBN Investor Presentation 5

For the 6 months ended June 30, 2014

14,716 15,092

2.9% 6.8% 5.4%

2.6%

In PHP Millions

Production Costs Cost of Sales & Services GAEX

SLIDE 6

15,145 15,092

2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 1H'13 1H'14

1,291 995

500 1,000 1,500 2,000 2,500 3,000 1H'13 1H'14

Financial Results Summary

ABS-CBN Investor Presentation 6

Net Revenues Cost and Expenses Net Income

0.3% 22.9%

17,178 16,378

2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 1H'13 1H'14

4.7%

In PHP Millions

For the 6 months ended June 30, 2014

SLIDE 7

Financial Results Summary - Recurring

ABS-CBN Investor Presentation 693 995

500 1,000 1,500 2,000 2,500 3,000 1H'13 1H'14

7 15,895 16,378

2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 1H'13 1H'14

Net Revenues Cost and Expenses Net Income

3.0% 43.6%

14,716 15,092

2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 1H'13 1H'14

2.6% For the 6 months ended June 30, 2014

In PHP Millions

Excluding election-related advertisements, revenues for the 1st half grew by 3.0% due to the strong performance of our films both locally and internationally and further supported by the performance of Sky Cable.

SLIDE 8

Income Statement

ABS-CBN Investor Presentation 8

Php Millions 1H'14 1H'13

Change

Amount % Change NET REVENUES 16,378 17,178

800
4.7%

Advertising Revenues 8,819 10,213

1,394
13.6%

Consumer Sales 7,559 6,965 594 8.5% COSTS and EXPENSES 15,092 15,145

53
0.3%

Production Costs 5,600 5,826

226
3.9%

Cost of Sales and Services 4,698 4,397 301 6.8% GAEX 4,794 4,922

128
2.6%

NET INCOME 995 1,291

296
22.9%

EBITDA 3,430 4,130

700
16.9%

For the 6 months ended June 30, 2014

SLIDE 9

Income Statement – Recurring

ABS-CBN Investor Presentation 9

Php Millions 1H'14 1H'13 Change Amount % Change NET REVENUES 16,378 15,895 483 3.0% Advertising Revenues 8,819 8,930

111
1.2%

Consumer Sales 7,559 6,965 594 8.5% COSTS and EXPENSES 15,092 14,716 376 2.6% Production Costs 5,600 5,770

170
2.9%

Cost of Sales and Services 4,698 4,397 301 6.8% GAEX 4,794 4,549 245 5.4% NET INCOME 995 693 302 43.6% EBITDA 3,430 3,276 154 4.7%

For the 6 months ended June 30, 2014

SLIDE 10

2nd Quarter 2014 Highlights – Revenues

ABS-CBN Investor Presentation 10

vs 1Q 2014

4,081 3,478 4,110 4,709

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 1Q'14 2Q'14 Consumer Sales Ad Revenues

8,191 8,187 14.6% 14.8%

vs 2Q 2013

Excluding election-related advertisements, total revenues declined by 1%. The ad revenue growth was fuelled by higher volume for the quarter and the impact of rate increase implemented last February. On the other hand, consumer sales declined due to lower number of movies released for the quarter. 3,463 3,478 5,790 4,709

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 2Q'13 2Q'14 Consumer Sales Ad Revenues

8,187 9,253 18.7% 0.4%

Election-related Revenues

11.5%

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2nd Quarter 2014 Highlights – Costs and Expenses

ABS-CBN Investor Presentation 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 1Q'14 2Q'14

7,412 7,680 3.6%

11

vs 1Q 2014 vs 2Q 2013

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 2Q'13 2Q'14

7,680 3.2% 7,934 Excluding election-related expenses, consolidated costs and expenses were flat versus last year. The growth in costs and expenses comes from higher costs of programming and bandwidth of

ur cable business and inventory costs from
ur licensing business.

Production costs remains flat quarter-on- quarter conforming to the management’s cost initiatives.

SLIDE 12

788 457

100 200 300 400 500 600 700 800 900 2Q'13 2Q'14 Net Income

2nd Quarter 2014 Highlights – Net Income

ABS-CBN Investor Presentation 12

vs 1Q 2014 vs 2Q 2013

538 457

100 200 300 400 500 600 700 800 900 1Q'14 2Q'14 Net Income

42.0% Excluding election-related income, net income for the quarter increased by 47.9% versus last year. Blockbuster movies released both locally and internationally boosted net income for the 1st quarter of 2014. 15.1%

Election-related Net Income

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Business Segments

ABS-CBN Investor Presentation 13

TV and Studio Operations

Pay TV Networks New Businesses

Broadcast
Global
Films and Music
Narrowcast and Sports
ABS-CBN mobile delivers ABS-CBN content and
ffers traditional telecoms services on mobile

devices.

Kidzania - educational themepark
Digital TV: digital broadcast plus additional

free-to-air channels

Cable systems
Internet broadband

SLIDE 14

Business Segments

ABS-CBN Investor Presentation 14

In Php Millions Revenues EBITDA Net Income 1H‘14 1H'13 % Ch 1H‘14 1H'13 % Ch 1H‘14 1H'13 % Ch

A. TV and Studio

12,999 13,650

4.8%

3,537 3,658

3.3%

1,706 1,646 3.6% Margins 27.2% 26.8% 13.1% 12.1%

B. Pay TV Networks

3,823 3,410 12.1% 879 830 5.9% 122 147

17.0%

Margins 23.0% 24.3% 3.2% 4.3%

C. New Business

198 275

28.0%
986
358

175.4%

833
502

65.9% Mobile 198 275

846
301
638
350

DTT

61
36
128
136

Others

79
21
67
16
D. Inter-segment Elims
569
64

TOTAL 16,451 17,271

4.7%

3,430 4,130

16.9%

995 1,291

22.9%

Margins 20.8% 23.9% 6.0% 7.5% For the 6 months ended June 30, 2014

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Business Segments - Recurring

ABS-CBN Investor Presentation 15

In Php Millions Revenues EBITDA Net Income 1H‘14 1H'13 % Ch 1H‘14 1H'13 % Ch 1H‘14 1H'13 % Ch

A. TV and Studio

12,999 12,367 5.1% 3,537 2,804 26.1% 1,706 1,048 62.8% Margins 27.2% 22.7% 13.1% 8.5%

B. Pay TV Networks

3,823 3,410 12.1% 879 830 5.9% 122 147

17.0%

Margins 23.0% 24.3% 3.2% 4.3%

C. New Business

198 275

28.0%
986
358

175.4%

833
502

65.9% Mobile 198 275

846
301
638
350

DTT

61
36
128
136

Others

79
21
67
16
D. Inter-segment Elims
569
64

TOTAL 16,451 15,988 2.9% 3,430 3,276 4.7% 995 693 43.6% Margins 20.8% 20.5% 6.0% 4.3% For the 6 months ended June 30, 2014

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TV and Studio - Broadcast

ABS-CBN Investor Presentation 16

9,576 8,675

2,000 4,000 6,000 8,000 10,000 12,000 1H'13 1H'14

Net Revenues

5,505 5,250

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 1H'13 1H'14

Production Costs 4.6%

In PHP Millions

9.4%

Excluding election-related advertisements, revenue grew by 4.6% backed by the strong ratings of our programs. For primetime, Ch2 continues to lead in audience share receiving

49% share for national and 36%

for MM.

1st Half 2014 Audience Share

CHANNELS TOTAL DAY PRIMETIME Total PH Mega Manila Metro Manila Total PH Mega Manila Metro Manila

ABS-CBN 2 44 31 33 49 34 36

GMA 7 33 39 34 31 39 34 TV 5 10 13 12 9 12 11 Others 13 17 22 11 16 20

For the 6 months ended June 30, 2014

Source: Kantar Media, January – June 2014

Rank Channel Program Share 1 ABS-CBN THE VOICE KIDS SUNDAY

36.4

Weekend 2 ABS-CBN THE VOICE KIDS SATURDAY

34.2

Weekend 3 ABS-CBN HONESTO

31.7

Weekday 4 ABS-CBN MARS RAVELO'S DYESEBEL

30.7

Weekday 5 ABS-CBN IKAW LAMANG

29.3

Weekday 6 ABS-CBN WANSAPANATAYM

29.0

Weekend 7 ABS-CBN MMK ANG TAHANAN MO

28.5

Weekend 8 ABS-CBN GOT TO BELIEVE

28.3

Weekday 9 ABS-CBN TV PATROL WEEKDAY

27.2

Weekday 10 ABS-CBN BET ON YOUR BABY

24.9

Weekend

1st Half 2014 Top 10 Programs - TOTAL

Source: Kantar Media, January – June 2014

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Highest rated program 36.4%

TV and Studio - Broadcast

ABS-CBN Investor Presentation

Rating of 14.5%

vs 11.4% of Eat Bulaga vs 13.4% last year

17

3rd Primetime Slot

36.2% Finale rating 30.8% Finale week Re-aired well-loved Asianovelas International Hit Vietnam, Malaysia

For the 6 months ended June 30, 2014

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TV and Studio - Broadcast

ABS-CBN Investor Presentation 18

International Presence

ASIA

Malaysia, Vietnam Cambodia, China Singapore, Samoa Indonesia, Myanmar

AFRICA

Kenya, Uganda, Nigeria, Namibia Tanzania, Ghana

Developing New Talents For the 6 months ended June 30, 2014

SLIDE 19

TV and Studio - Global

1,595 1,713

400 800 1,200 1,600 2,000 2,400 2,800 3,200 1H'13 1H'14

Cost of Sales and Services 2,596 2,872

400 800 1,200 1,600 2,000 2,400 2,800 3,200 1H'13 1H'14

Net Revenues ABS-CBN Investor Presentation 19

Global Viewership

10.6% 7.4%

In PHP Millions

Shorter window between local and international releases drove the increase in Global’s theatrical revenues of 53%. Starting Over Again was the highest grossing international release. ASAP Dubai and OK Go Canada fuelled the 45% growth of Global’s advertising revenues.

2,143 2,463 2,449 2,254 2,741 2,781

500

1,000 1,500 2,000 2,500 3,000 2009 2010 2011 2012 2013 1H '14

For the 6 months ended June 30, 2014

SLIDE 20

ABS-CBN Investor Presentation 20

Total revenues increased by 15% driven by strong local theatrical sales

f Star Cinema movies. 3 out of the 8

movies released generated more than Php 300M in box office receipts. Skylight continues to fill the gap of many stories not tackled by mainstream movies. My Illegal Wife set the record for the highest grossing Skylight film produced.

357 413

200 400 600 800 1,000 1H'13 1H'14

Cost of Sales and Services

TV and Studio - Films and Music

760 876

200 400 600 800 1,000 1H'13 1H'14

Net Revenues 15.3%

In PHP Millions

Released 3 movies in the 2nd quarter.

15.7%

For the 6 months ended June 30, 2014

Others, 16

Others 0.2B

As of June 2014, Star Cinema produced 33% of total local films and accounted for 88% of total local films receipts.

Star Cinema, 1.3B

No. of Local Films Produced

Local Theatrical Revenues Star Cinema, 8

Mounted one of the most successful concerts for the year.

SLIDE 21

TV and Studio - Narrowcast and Sports

ABS-CBN Investor Presentation 21

In PHP Millions

683 625

200 400 600 800 1,000 1H'13 1H'14

Cost of Sales and Services 828 780

200 400 600 800 1,000 1H'13 1H'14

Net Revenues 5.8% 8.5%

Subscription revenues from our cable channels grew by 11% fuelled by Cinema One’s 12% growth from both local and international subscription. It continues to be the no. 1 cable channel. ABS-CBN Sports + Action continues to bring premium sports offerings for both local and foreign content: UAAP, Pinoy Pride, FIBA and NBA. For the 6 months ended June 30, 2014

SLIDE 22

Pay TV Networks - Sky Cable

ABS-CBN Investor Presentation 22 3,137 3,600

800 1,600 2,400 3,200 4,000 4,800 1H'13 1H'14

Costs and Expenses

In PHP Millions

3,410 3,823

800 1,600 2,400 3,200 4,000 4,800 1H'13 1H'14

Net Revenues 12.1% 14.8%

Total revenues increased by 12% from improvement in the cable and broadband subscription revenues of 7% and 40%, respectively. Cable subs grew by 3% while broadband posted a growth rate of the no. of broadband subscribers grew by 31%. Excluding forex impact, expenses increased by 13%. For the 6 months ended June 30, 2014

SLIDE 23

New Business - ABS-CBNmobile

ABS-CBN Investor Presentation 23

Exclusive Mobile Content

1,000

2,000 3,000 4,000 5,000 6,000 Nov Dec Jan Feb Mar Apr May Jun

Ave. Daily Activations

Approximately 537,000 subs as of June 2014

SLIDE 24

Capital Expenditures

ABS-CBN Investor Presentation 24

In PHP Millions For the 6 months ended June 30, 2014

To date, CAPEX spending is at Php 2.3B.

387 989 925 657 1,634 2,023

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Program Rights Pay TV Digital TV, Maintenance and Others

1H '14 Balance 1,044 2,623 2,948

SLIDE 25

Balance Sheet Highlights

ABS-CBN Investor Presentation 25

Ratios 2013 1H '14 Current 1.76 2.24 Debt-to-Equity 0.57 0.78 Net Debt-to-Equity 15.67% 19.48%

57,992 64,848

10,000 20,000 30,000 40,000 50,000 60,000 70,000 2013 1H '14

Total Assets

14,680 20,383

5,000 10,000 15,000 20,000 25,000 30,000 2013 1H '14

Total Borrowings

25,923 26,239

5,000 10,000 15,000 20,000 25,000 30,000 2013 1H '14

Equity For the 6 months ended June 30, 2014

In PHP Millions

10,617 15,270

5,000 10,000 15,000 20,000 25,000 30,000 2013 1H '14

Cash

SLIDE 26

Except for historical and operating data and other information of historical matters, the statements contained herein are “forward-looking statements”. The words “believe”, “intend”, “plan”, “anticipate”, “continue”, “estimate”, “expect”, “may”, “will” or other similar words are frequently used to indicate these forward looking statements. Any such forward-looking statement is not a guarantee of future performance and involves a number of known and unknown risks, uncertainties and other factors that could cause the actual performance, financial condition or results of operation of ABS-CBN to be materially different from any future performance, financial condition or results of operation implied by such forward-looking statement.

ABS-CBN Investor Presentation 26

SLIDE 27

THE END

ABS-CBN Investor Presentation 27